While reserving capital from operational profit might seem even harder for Telecel than its peers its absence on the new base station front is likely a reflection of a shortage of capital for aggressive expansion, something that its new majority owner, the government, will hopefully be able to remedy.
Zimbabweans use WhatsApp more than any other broadband service or application. According to the latest report from the telecoms regulator, POTRAZ, the Instant Messaging platform’s bundles accounted for 34% of mobile broadband traffic in the fourth quarter of 2015. This brings up the net neutrality debate again.
According to data analysed by technology research firm Ovum, the latest figures on mobile penetration represent a massive leap in mobile technology’s growth. In 2005, global mobile penetration stood at 33% and over the past 10 years the number has steadily increased to reach the current milestone.
Tigo Tanzania, the East African mobile operator has announced that it will now be offering all its 10 million subscribers free access to the instant message platform, WhatsApp.
Local mobile network operator, NetOne, is on that Valentine’s Day tip this year. It is offering its prepaid subscribers a full day of free calls made to NetOne numbers on the 14th of February.
Local telecommunications operators are going to have to make larger contributions to the State following the government’s resolution to raise the contributions to the Universal Service Fund from 0.5% to 1.5% of their gross annual turnover.
South Africa’s Internet Service Providers’ Association (ISPA) has released a statement encouraging telecoms operators to innovate in the face of challenges from Over The Top (OTT) Services like WhatsApp and Skype, rather than seeking to regulate them.
Powertel Communications, the State-owned Internet Access Provider with its fingers in VoIP, broadband, VPN and prepaid electricity distribution services recently added unlimited Fibre to the Home (FTTH) packages to its broadband lineup.
Mahindra Comviva, the tech financial services vendor and Econet’s technical partner which ran point on the introduction of EcoCash recently produced a video showcasing EcoCash’s role in financial services. EcoCash is powered by the Mobiquity Money platform which is provided by Mahindra Comviva.
Egypt becomes the second country to block the service after India made the move as part of a response to concerns raised around Free Basics’ net neutrality violations. Etisalat Egypt, Facebook, and Egyptian officials haven’t mentioned the reason behind the shutdown in Egypt but there has been a lot of speculation that the country is…
2015 was no doubt the toughest year in recent memory barring 2008 when our economy was at the height of its hysterical hyperinflation episode. Indeed some have even gone so far as to claim that 2015 has even been worse than 2008 and in some ways they are right.
Econet has been contesting a directive given last year by POTRAZ to all operators to lower their voice tariffs. This adjustment led to the lowering of mobile voice calls from 23 cents a minute to 15 cents a minute at the start of 2015. This adjustment had been determined by the new LRIC pricing model…
Along with the two other mobile network operators in Zimbabwe, Econet is obliged by the telecoms regulator, POTRAZ, to ensure that all its subscribers are registered with accurate details, something that meets mobile telecoms Know Your Customer (KYC) requirements and helps monitor criminal activity on the network.
However, one other number that stood out for us related to Econet’s broadband services. According to to the analysts’ presentation which accompanied the results, Econet has 7 million broadband subscribers. Econet says this number is an improvement from the 4,7 million broadband subscribers that the operator had in the same period last year.
Local stockbrokers, Lynton Edwards have projected a 21.3% drop in revenue for the period ending February 2016 along with a 49% reduction in net profit. According to these measures, Econet’s revenue will stand at $587 million and profit for the full year will come to $35,4 million.
Econet has just reported that it has retrenched 100 employees in efforts to streamline operations in an environment where revenues have fallen.
It cannot be ignored that Telecel has been on a downward trend since 2012 if the subscriber numbers from Potraz are anything to go by. With the licence issues reaching boiling point early this year resulting in the most disruption on their timeline it is interesting to see how they will bounce back.
Zipcash continues to surprise showing steady growth while as expected postal and courier services are going down.
The latest statements from the Minister of ICT give a glimpse into what the government is thinking in terms of Infrastructure and may explain the ICT ministry’s agenda in infrastructure sharing.
In its latest effort to highlight its position as a job creator, Econet has published a full page press statement outlining its support of more than 60,000 jobs in the Zimbabwean economy. Could be it be part of Econet’s efforts to lobby for the loosening of regulation which has been handicapping the industry?
We have just concluded the first session of the MISA Governance Conference. Here is a summary of the event so far.
Apple and Samsung are planning to kill the SIM card by introducing an embedded e SIM. This would allow phone users to switch between operators at any moment
The government was offered ownership and control in Telecel Zimbabwe and it has been reported that this offer is being taken up. This comes after the Minister of ICT mentioned this offer in an interview. However, this move doesn’t seem to make sense considering some facts on the ground.
With all this talk on infrastructure sharing, we also need to consider the government’s viewpoint and possibly understand why it feels so strongly towards it. The government is obliged to ensure that consumers receive fair pricing for goods and services while it also protects the businesses in telecoms. These are the motivations behind this move…
In threatening Econet with havoc if they don’t share infrastructure, the ministry of ICT missed an opportunity to appreciate the significant contribution that Econet’s investment in infrastructure has made. But all this would be easier to say if Econet themselves were fair in the ecosystem they play in.